The hidden alternative Co-operative values, past, present and future Edited by Anthony Webster, Alyson Brown, David Stewart, John K. Walton and Linda Shaw 3770 The Hidden alternative.qxd:Layout 1 21/12/11 12:25 Page iii The hidden alternative Co-operative values, past, present and future Edited by Anthony Webster, Alyson Brown, David Stewart, John K. Walton and Linda Shaw 3770 The Hidden alternative.qxd:Layout 1 21/12/11 12:25 Page v Contents pages Figures, tables and boxes vii Contributors ix 1 The hidden alternative? 1 Anthony Webster, Linda Shaw, David Stewart, John K. Walton and Alyson Brown 2 Co-operativism meets City ethics: the 1997 Lanica take-over bid for CWS 16 John F. Wilson 3 Values and vocation: educating the co-operative workforce, 1918–39 37 Keith Vernon 4 International perspectives on co-operative education 59 Linda Shaw 5 Co-operative education in Britain during the nineteenth and early twentieth centuries: context, identity and learning 78 Tom Woodin 6 Beyond a fair price 96 Samantha Lacey 7 Negotiating consumer and producer interests – a challenge for the Co-operative Movement and Fair Trade 115 Katarina Friberg 8 ‘A party within a party’? The Co-operative Party–Labour Party alliance and the formation of the Social Democratic Party, 1974–81 137 David Stewart 9 The creation of new entities: stakeholders and shareholders in nineteenth-century Italian co-operatives 157 Patrizia Battilani 3770 The Hidden alternative.qxd:Layout 1 21/12/11 12:25 Page vi vi Contents 10 Co-operatives and nation-building in post-apartheid South Africa: contradictions and challenges 177 Vishwas Satgar and Michelle Williams 11 Community, individuality and co-operation: the centrality of values 203 Ian MacPherson 12 An alternative co-operative tradition: the Basque co-operatives of Mondragón Fernando Molina and John K. Walton 226 13 ‘A co-operative of intellectuals’: the encounter between co-operative values and urban planning. An Italian case study 251 Marzia Maccaferri 14 Government to governance: the challenge of co-operative revival in India 266 L. K. Vaswani 15 Minding the GAAP: co-operative responses to the global convergence of accounting standards and practice 288 John Maddocks, Elizabeth Hicks, Alan J. Robb and Tom Webb 16 Resting on laurels? Examining the resilience of co-operative values in times of calm and crisis 306 Jan Myers, John Maddocks and James Beecher 17 Shared visions of co-operation at a time of crisis: the Gung Ho story in China’s anti-Japanese resistance 327 Ian G. Cook and Jenny Clegg 18 The hidden alternative: conclusion 347 Ed Mayo Index 355 3770 The Hidden alternative.qxd:Layout 1 21/12/11 12:25 Page 1 1 The hidden alternative? Anthony Webster, Linda Shaw, David Stewart John K. Walton and Alyson Brown The proclamation by the UN of 2012 as the International Year of Co-operatives represents a milestone in the history of the international co-operative movement. It marks an important recognition within the international community of the role of co-operatives in promoting the ‘fullest possible participation in the economic and social development of all people’, including women and peoples of all ages, creeds, ethnic- ities and disabilities.1 It reflects the growth and renewal of co-operatives globally during the early part of the twenty-first century. Whether we focus on the rapid growth of financial co-operatives2 or the increase in the numbers of co- operatives across Africa,3 the evidence of a co-operative revival is becoming impossible to ignore. The International Labour Organization (ILO), the lead UN agency on co-operatives, developed the only interna- tional government instrument on co-operatives in its Recommendation on the Promotion of Co-operatives (2002).4 Furthermore, co-operatives have proved to be more resilient in the wake of the global financial crisis of 2008–09 than many mainstream commercial organisations.5 In 2010, for example, the European Commission recognised co-operatives as a mainstream development actor alongside non-governmental organ- isations (NGOs) and trade unions.6 Crucially the Recommendation includes a definition of co-operatives based on the movement’s own core values and principles – an unusual and perhaps unique occurrence.7 A systematic re-focusing on core values has also been critical to the process of co-operative renewal as many of the articles in this collection demonstrate. This international acclaim for co-operation was mirrored by some startling developments in UN member states. Perhaps most notably in Britain, following its victory in the May 2010 election, David Cameron’s Conservative–Liberal Democrat coalition government iden- tified co-operatives and other forms of mutual enterprise as integral to its strategy for reducing public expenditure and public sector employ- 3770 The Hidden alternative.qxd:Layout 1 21/12/11 12:25 Page 2 2 The hidden alternative ment through the development of non-state structures to deliver essential public services.8 This idea was mooted in the Conservative election manifesto and in a special policy document published in March 2010, which coined the phrase ‘Big Society’. This has become the cornerstone of coalition policy presentation, despite criticism that it lacks definition.9 At the time of writing, in light of the absence of any clearly articulated strategy or resources to establish the new co-opera- tives which are supposed to ‘take up the slack’ left by massive public expenditure cuts, it is hard not to conclude that the ‘Big Society’ is little more than cosmetic political ‘spin’ to placate deepening anxieties caused by the deepest cuts in public services in living memory. Nonetheless, even this dubious nod in the direction of co-operation shows that co-operatives are beginning to become part of the main- stream political economy. As such they are experiencing an unexpected surge of political and intellectual approval and celebration, even as doubts intensify about the coalition government’s seriousness about the ‘Big Society’.10 Nevertheless, it is clear that, in some circles and some senses, at least, co-operatives are in fashion. It was not always so. As recently as the late twentieth century, the global prospects for co-operation were gloomy indeed. By 1990, co-operatives were in decline in many parts of the developed world – especially in Europe. Nowhere was this more apparent than among the great consumer co-operative movements of Western Europe, most of which were in full retreat, losing market share to formidable investor- owned corporate retailing chains of supermarkets and department stores. By 1990, the main consumer co-operative organisations of Austria, Germany, France and Belgium were either dead or dying, while in Britain the future of co-operation looked perilous indeed.11 In Britain , the social democratic model for managing the economy was abandoned in favour of a neo-liberal, ‘free’ market one. Advocates of the new orthodoxy tended to idealise the investor-led model of business organisation over alternatives such as co-operatives, which were associated with left-wing ideas and the previous social demo- cratic approach to economic development. Co-operative associations also conflicted with the neo-conservative model of individualised ‘classless’ consumerism and the New Right’s desire to disempower organised labour. This negativity towards co-operatives was exacer- bated by the failure of the Soviet socialist model, completed by the regime’s collapse in 1991. This was widely represented as not only a victory for the Western liberal ‘democratic’ political model, but also of the Western investor-led corporate capitalist system, as exemplified by the USA, much of Western Europe and Japan.12 Co-operation tended 3770 The Hidden alternative.qxd:Layout 1 21/12/11 12:25 Page 3 The hidden alternative? 3 to be seen by the neo-conservative orthodoxy which emerged from the Cold War as an adjunct of socialism and therefore almost equally discredited. The emergence of state-controlled ‘co-operatives’ in the Soviet bloc during the Cold War period, though strongly criticised by Western elements within the international co-operative movement itself, served to reinforce this perception of co-operation as a ques- tionable quasi-socialist experiment, as did the left-leaning political credentials of some Western movements. Triumphalist advocates of Western corporate capitalism consequently believed that co-operatives would, in due course, be consigned with the rest of the left’s economic ideas to the dustbin of history.13 Even among those economic thinkers resistant to such ideological stereotyping, there was, and still is, a tendency to see co-operation as a ‘stop-gap’ response to the rare cases where markets are temporarily unable to respond to the needs of groups in society. Such failures are, it is argued, short-lived, as are the co-operatives which address such failures, before more efficient investor-led firms soon emerge to meet the group’s needs. As Robert Grott, a particularly strong supporter of this view, puts it: In summary, the consumer co-op structure is a useful one which can offer many things to individuals and a community. However, it seems that, for the structure to be appropriate, certain environmental conditions must be present. These include a real need for a product or service and the presence of an active desire for social/economic change. History has repeatedly shown that when those conditions change, the movement that they engendered begins to diminish.14 A wave of demutualisations across the developed and developing world, together with a rejection of co-operatives in the former Soviet bloc countries, largely because of the association of the model with Communist oppression, seemed to point the way to the probable extinction of co-operative models of economic organisation within a generation. In short, co-operation was being measured for its shroud.